Hello Karl. Welcome to the forums.
For a foreign citizen
, lending criteria are much stricter than it is for Australian citizens. Few Australian banks will lend to foreign investors as they consider this a complex, high-risk area.
In saying that, foreign property buyers can still qualify for a mortgage in Australia.
The caveat is that you will normally be charged a higher interest rate typically around 6.5% to 8.00% per annum (p.a.).
As a general rule:
- You can borrow up to 70% of the property value of a new property in Australia with interest rates around 6.5% to 8%.
- You can borrow up to 50% at interest rates below 5.00% if you have a high net worth and earn a primary/preferred currency.
- Interest only loans are available with a maximum 5-year term.
- If you live in Australia or you're married to an Australian citizen then you can potentially borrow more.
Please also note that:
- Your income must be in an acceptable currency, otherwise, we cannot assist you.
- Construction loans and vacant land are available at higher interest rates.
- Foreign business income is only accepted by one or two lenders.
We are mortgage brokers that specialise in financing Australian real estate purchases by foreigners. Please call us on 1300 889 743
or you can fill in our free assessment form